Gujarat-based Sanghi Industries, part of the Sanghi Group, plans to raise about INR660 crore in debt for part-financing an expansion programme that will almost triple its current capacity.
Sanghi, which currently operates a 2.6Mt cement plant in Kutch, Gujarat, has estimated the expansion programme to cost INR1,100 crore. Of this, about INR440 crore would come through equity, director Alok Sanghi told ET.
“We are revisiting our earlier plans that had been suspended due to the recession. Seeing recovery in the economy, we have decided to go ahead with the expansion,” said Mr Sanghi. The global slowdown following the liquidity crisis had prompted many companies to put their expansion plans on hold as banks weren’t willing to lend to projects.